Gold, silver ETFs jump up to 5% as rate-cut hopes lift bullion prices. What should investors do?

Gold and silver ETFs rallied up to 5% on Wednesday, supported by expectations of a more accommodative Federal Reserve after weak US data signalled slowing consumer spending and rising growth concerns.

Tata Gold ETF surged the most, rising about 5% to a day’s high of Rs 15.8. Union Gold ETF gained 3%, followed by Baroda BNP Paribas Gold ETF, Axis Gold ETF, DSP Gold ETF, Zerodha Gold ETF, and Angel One Gold ETF, which rose up to 2% during the session.

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Zerodha Silver ETF rallied the most, around 4%. Tata Silver ETF gained 3%, Axis Silver ETF and Mirae Asset Silver ETF went up to 2% in today’s session.

On Wednesday, Gold and silver futures opened higher on the MCX. MCX silver futures for March 5, 2026, jumped 3%, up Rs 6,970 to Rs 2,59,418per kg. Gold futures for April 2, 2026 delivery were up Rs 1,633 or 1%, to Rs 1,58,436 per 10 grams.

Abhishek Bhilwaria, Bhilwaria MF, AMFI registered MFD shared with ETMutualFunds that Gold and silver prices are rising in February 2026 primarily due to a combination of heightened geopolitical tensions, persistent central bank buying, and a softer US Dollar following a period of record-high volatility.

For investors, a disciplined, staggered allocation strategy (such as SIPs) rather than chasing short-term price spikes, suggesting a core portfolio holding of 5–15% in precious metals to hedge against currency depreciation and market uncertainty, Bhilwaria further said.

In international commodity markets, Gold and silver prices moved higher on Wednesday as U.S. Treasury bond yields declined following data showing December retail sales growth had stalled, signalling a potential softening in the economy ahead of key jobs data.

Silver climbed more than 1.5% toward $82.4 per ounce, recovering losses from the previous session as weak U.S. economic data and declining confidence in U.S. assets boosted safe-haven demand.

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Jigar Trivedi of IndusInd Securities said Markets are currently pricing in around 60 basis points of Fed easing by year-end, while a rotation away from dollar-denominated assets amid policy uncertainties in Washington has added to demand. However, investors remain cautious due to recent volatility in metals prices following sharp rallies and sell-offs.

Aamir Makda, Commodity & Currency Analyst, Choice Broking told ETMutualFunds that most of ETFs are continued to sustain over their respective 50-DEMA level like Mirae Asset Gold ETF sustained 139.55, GoldBees sustained over 118.68 and CHOICEGOLD managed to hold over 141.90.

Since Gold is outperforming the Silver price in past few sessions after panic fall in International and Indian market, Silver ETFs are also underperforming compared to Gold ETFs. At current condition, Silver ETFs may remain sluggish in its moderately bullish trend, Aamir Makda further said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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